Leefung-Asco buys Wing On property

LEEFUNG-ASCO Printers Holdings has bought the entire 10th floor of the 32-storey Wing On House in Central for $103.6 million, to be its new head office.

The printing firm said that of the 15,946 square feet of floor space, two-thirds would be used by the firm and one-third would be leased.

Leefung-Asco yesterday announced that its wholly owned subsidiary, Lakesview, had agreed to buy the 10th floor of Wing On House from an independent third party.

An initial deposit of $5 million has been paid, with a further sum of $26.1 million to be handed over on the signing of the formal sale and purchase agreement on September 3.

The balance of $72.6 million will be paid on completion of the deal, which should take place within one month of the signing of the sale and purchase agreement.

Of the total amount, Leefung-Asco will put up $60 million from bank loans and the balance from its internal resources.

The property was valued on August 20 by Sallmanns (Far East), an independent valuer, at $105 million.

Leefung-Asco said the acquisition was necessary as its current head office, in Yang's Industrial Building in Lai Chi Kok Road, would be demolished towards the end of the year.

The company said the acquisition would allow it to obtain some recurring income and to avoid having to pay rent.

The company intends to redevelop its current property in Lai Chi Kok Road, which will take about two years. But the directors have not yet finalised the development plan.